THE African Export-Import Bank (Afreximbank) has pledged fresh efforts to boost Africa’s automotive sector and ease trade bottlenecks that have long hampered intra-African trade.
Speaking on the bank’s initiatives at the Sovereign Business Engagement event as part of the Intra-African Trade Fair (IATF2025) in Algiers, Algeria, yesterday, Dr Gainmore Zanamwe, Afreximbank’s Director of Trade Facilitation and Investment Promotion, said the Bank was positioning itself as a “listening bank” committed to understanding the needs of clients and tailoring solutions, even when existing tools fall short.
This initiative, linked to Afreximbank’s African Sub-Sovereign Governments Network (AfSNET), aims to increase grassroots involvement in intra-African trade, decentralise economic growth, and strengthen sub-sovereign governance across the continent.
“The automotive industry is a high priority,” Zanamwe said, noting that Afreximbank had already established a $1 billion facility to support states to develop the sector.
He stressed that the goal was to encourage new vehicle production, reduce imports of second-hand cars, and create jobs across the continent.
This drive, Dr Zanamwe said aligned with the African Continental Free Trade Area’s (AfCFTA) emphasis on building competitive regional value chains.
He said negotiations on rules of origin in the automotive sector were ongoing.
He stated that significant challenges remain, particularly in moving goods across borders.
“Containers sometimes exit Africa before re-entering, and traders face numerous stops at borders,” Dr Zanamwe said.
To address this, he said, Afreximbank had introduced a Transit Guarantee Scheme that allowed a single transit bond to cover long-distance cargo movement, such as from Cape to Cairo.
The initiative, he said could save the continent an estimated $300 million by cutting transaction costs and facilitating smoother trade.
On quality and standards, he said Afreximbank was setting up Africa Quality Assurance Centres to fill a critical gap in testing and certification facilities.
The first, he said was already operational in Ogun State, Nigeria, with more planned in Kaduna, Kenya and other locations.
These, Dr Zanamwe said would be crucial for certifying vehicles and components.
He added that the Bank was also working to institutionalise trade by aggregating goods, managing logistics and warehousing, and linking producers directly to markets.
The model, he said, benefits smallholder farmers, SMEs, and informal cross-border traders—many of them women.
For example, he said, the Bank was collaborating with Dangote refinery to streamline the distribution of petrochemicals and fertilizers.
“Our focus is to build systems that solve real logistical challenges, support African businesses, and unlock the full potential of intra-African trade,” Dr Zanamwe said.
FROM DAVID ADADEVOH, Algiers